In this study, the effect of Capitalism on Otoman Empire and socio-economic
depression of the Otoman Empire in its last period as a result of wars that it get involved
will be analyzed. The data from written resources related to the history of Economics will
be used during this analyzes.
The socio-economic life in Ottoman Empire, in its last period, suffered from
both the wars it get involved and the lack of well-educated executives contrary to its early
periods. Moreover, increase of malfunctioning in educational system results in decrease of
qualified labor force, therefore, increase of economic troubles. This study will initially
focus on the Ottoman Empire‟s last period educational and medical structures.
In the last period of the Ottoman Empire, typhus, cholera, epidemics such as
malaria and trachoma is known to be experienced. In this study, after a description of the
causes of these outbreaks, the educational structure of the Ottoman Empire will be
mentioned. Educational System in the Ottoman Empire has deteriorated for various
reasons as time progresses. First of all, the Ottomans were unable to follow the scientific
and technological developments in the West. Second, people who are not proficient in the
education system has found a place for themselves. After realizing this deterioration, the
Ottoman Empire introduced some reforms regarding the educational issues but these
reforms brought along with dichotomy. The Modern Schools functioning on the basis of
western Educational system and the traditional Ottoman Madrassahs were the poles of this
dichotomy. In the Ottoman society, both common health problems and underdeveloped
educational system lead to lack of qualified labor force.
The problems in education and health sectors of Ottoman Empire directly
affected its economy. To demonstrate this effect, education and health sectors will be
described.
Throughout this study, the population structure of the Ottoman Empire,
Population censuses conducted in the Ottoman Empire and its foundations will be
mentioned, and then the data obtained from these censuses will be used to describe the
nature of the labor force of the Ottoman Empire. Wars that the Ottoman Empire get
involved in its last period, and the outcomes on the labor force affected the production
power of the Ottomans. But the following should be noted, labor force of Ottoman Empire
impacted on by health problems.
In addition to these existing problems, the entrance of Capitalism which is
progressive and should spread to live, into the Ottoman lands transformed the Empire to a
semi-colonial state. Due to Ottoman public debt administration, Western Countries
achieved the Economic management of the Ottomans and manipulated the Ottoman
economy as they wish. This situation shows that Imperialism can be established not only
by military interventions but also economic achievements.
Furthermore, treaties signed with Western Europe in the last period of the
Ottoman Empire and the reforms applied on the favor of Western Capitalism adversely
affected the Ottomans economy. The process of European integration began with these
reforms and treaties, resulted in a growing foreign trade rate against to Ottoman Empire.
Particularly by 1838 trade treaty privileges provided to the United Kingdom were also provided to other European countries within a short time. Thus western capitalism which
started to spread from Europe, started to have a grip on the Ottoman Empire‟s Economy.
An excessive accumulation of capital occurred in Western countries as a result
of trade with countries whose dominant economic system is not capitalism. There are also
other factors affecting accumulation of capital for sure, but rather than analyzing the
dynamics of capital accumulation, this study will analyze the followings; trade, which is
the Capitalism‟s main tool to spread, the accumulated capital as a result of trade, and
capital export through giving the debt to the countries.
In this context, In the specific example of the Ottoman Empire and Europe will
be selected. This study will analyze why Ottomans borrowed dept and where they used
them. The relationship between the Ottoman Empire and the spread of capitalism will be
analyzed with the philosophy of heterodox economics.
Elements of the Muslim- Turks did not take place in trade in the Ottoman
Empire. After Western capitalist countries began to assume an important role in the
economic life of the Ottomans, the place of non-Muslims, currently forming the bourgeois
part of the Ottoman Economy, has gradually strengthened. Recognition of this situation
by the Unionists and then their efforts to create Muslim-Turkish bourgeois against the
non-Muslim bourgeois became the most remarkable event during the late nineteenth
century and early twentieth century. the ideological prime movers of the National
Economy like Yusuf Akçura and Ziya Gökalp and their opinions will be mentioned under
the title of „The Rise of the Idea of National Economy.
As for title of „Ottoman Empire‟s Wealth‟, the economical structure of the
State, shares of the private sectors and government, sectoral structure of production
sector, analysis of the agricultural sector in the Ottomans, and national income and
revenue of the Ottoman Empire will be mentioned in this study.
Ottoman Empire‟s income was based on agriculture. But not using of
technology that was in Ottoman‟s agriculture, reduced it‟s efficiency. Also people did not
product for the market or in other words people‟s production was for their subsistence.
Subsistence production was due to lack of infrastructure in the Ottoman Empire as well as
sociological reasons. That situation had prevented accumulation of capital in the Ottoman
Empire.
Finally, the social and economic developments during the last period of the
Ottoman Empire and the Ottoman Economy was based on agriculture will be emphasis in
the last part of the study. Also why not provide the accumulation of capital will be seen in
the Ottoman Empire. In addition by referring to the causes of financial crises experienced
in recent years of the Ottoman Empire, will be understood how did Ottoman Empire come
to be semi-colony. How did semi colonial status of Ottoman Empire‟s Economy bequeath
to the young Republic of Turkey, will be understood as a result of our work.